Volume 7: Urban Energy Systems: Building, Transport, Environment, Industry, and Integration

Game Theory Based Optimal Battery Power Flow Management in a Peer-To-Peer Energy Sharing Network Juliana Nepembe*, Xianming Ye, Xiaohua Xia

Abstract

This paper presents a household battery charging and discharging game for a power supply-demand regulation in a peer-to-peer energy sharing, operating in the day-ahead electricity market. The problem is formulated as a noncooperative Nash equilibrium game where the households are considered selfish but rational players whose objectives are to optimize their individual battery state of charge and energy cost. The application of the proposed model to a practical case study of three households shows the potential of the households to regulate the electricity in the smart grid and save their energy costs. Households 1, 2 and 3 operating in the proposed model saved energy costs of up to 59.8%, 58.8% and 58.9%, respectively compared to them operating in a strictly real-time electricity market and household 1, 2 and 3 also had savings of up to 10%, 3.8% and 8.4%, respectively compared to them operating in a strictly day-ahead electricity market.

Keywords Day-ahead market, electricity regulation, game theory, peer to peer energy sharing, smart grid